Tokyo stocks end see-saw session higher, Toshiba dives
16 May 2017 - 10:25
Tokyo: Tokyo stocks ended a seesaw session in positive territory Tuesday, following record closes on US and European markets and a rally in oil prices, but Toshiba dived after warning of huge losses.
Japanese traders picked up a strong lead from Frankfurt, London and New York which saw all-time highs Monday thanks to crude rally that boosted energy companies.
Prices leapt after oil ministers from Saudi Arabia and Russia -- the world's two biggest producing nations -- declared Sunday that they would consider extending an output cut into 2018.
"The comments from Saudi Arabia and Russia are driving prices up but I'm sceptical that crude will see a new level," Hong Sung Ki, a commodities analyst at Samsung Futures, told Bloomberg News.
"As producers in the US are expected to increase output, prices will continue to be restricted from rising."
European stocks moved higher helped by a strong win for German Chancellor Angela Merkel's party in a regional vote Sunday, four months before national elections.
Japanese shares gave up most of the early gains by the break, but recovered moderately by the close as investors bought on dips.
The Nikkei 225 index gained 0.25 percent, or 49.97 points, to finish at 19,919.82, while the Topix index of all first-section issues ticked 0.27 percent, or 4.23 points, higher to 1,584.23.
The dollar weakened to 113.37 yen from 113.70 yen in New York.
Toshiba collapsed 12.14 percent to 230.0 yen on concerns about its future after warning Monday it likely lost more than $8.0 billion in the past fiscal year and again delayed the full release of its nine-month financial results.
Despite oil prices extending Monday's gains, explorer Inpex reversed an early advance and ended the session down 2.02 percent at 1,065.5 yen.
Toyota rose 1.39 percent to 6,093 yen while rival automaker Nissan pushed 1.05 percent higher to 1,103 yen.
Panasonic jumped 2.31 percent to 1,372.5 yen with Sony up 0.44 percent at 4,023 yen.
Japan's top three banks declined after reporting mixed full-year earnings.
Mitsubishi Financial Group slipped 0.24 percent to 719.7 yen, Sumitomo Mitsui Financial Group lost 0.19 percent to end at 4,163 yen, and rival lender Mizuho fell 1.93 percent to 203.1 yen.
Hello Kitty maker Sanrio dropped 3.54 percent to 2,070 yen after Daiwa Securities cut its stock price target.